Checking a Broker and the Brokerage Contract

A broker must have general terms of business and display them prominently on the premises and on its website, and specifically draw your attention to their content and binding nature (Art. 23). They contain the amount or method of determining the fee, a description of the tasks the broker must perform (connecting the parties, checking documents on the property and its condition, negotiations and preparatory steps) and the type and amount of costs for additional services. The terms are part of the brokerage contract.

The law does not set the commission, you agree it with the broker. The contract is concluded in writing or electronically (Art. 18). It must contain the broker's details with proof of entry in the Register, your details, the type and essential elements of the transaction including the sale price or rent, the amount, method and deadline for paying the fee, the term, costs of additional services, and the rights and obligations of the parties. The price is set so that it includes the brokerage fee. The contract is for a fixed term, and unless agreed otherwise it is deemed concluded for six months (Art. 19).

The broker acquires the right to a fee when the transaction is concluded, unless it is agreed that it is acquired when a pre-contract in the legally required form is concluded (Art. 27). It may not demand partial payment in advance, except that the contract may provide for part of the fee to be paid from a deposit kept by the principal because the other party failed to perform. Costs of additional services can be charged only if expressly stated in the contract. Unless otherwise agreed, the broker is also entitled to the fee if you conclude, within nine months of the contract ending, a transaction resulting from its direct actions. Exclusive brokerage and anonymity of the principal apply only if expressly agreed, and the broker must warn you of the consequences (Arts. 30 and 31).

The broker must inspect the documents on the right to the property and warn you of risks from registered rights and encumbrances in the cadastre, and of pre-emption rights and other restrictions on trade (Art. 20). In advertisements it must state the location, area and structure of the property, and the terms advertised must match the contract. It is forbidden to advertise a property for which it has no brokerage or sub-brokerage contract (Art. 25). To conclude a pre-contract or contract in your name or to receive a deposit and price, an authorisation certified under the law on certification of signatures is required (Art. 26). A broker may hold principals' money only in special deposit accounts (Art. 34).

The contract ends when its term expires, when the transaction it covers is concluded, or by termination in writing or electronically (Art. 32). Termination need not be justified and takes effect when delivered to the broker. You pay brokerage costs only if it was expressly agreed that you bear them (Art. 33). Supervision of the law is carried out by the Ministry of Economic Development, and inspection supervision by the market inspection (Art. 35). Working without registration is punishable by a fine of €4,000 to €20,000 for a legal entity (Art. 36).